But he praises UK Chancellor Gordon Brown's decision to give the Bank of England the operational independence to set interest rates in Britain.

"If by some unlucky chance I became chancellor of the exchequer tomorrow, I would immediately confirm my predecessor's arrangements," he said.

He reaffirms his belief that the European Constitution is effectively dead following the rejection of it by voters in France and the Netherlands.

"There is no way of rescuing the treaty, although I was in favour and the sooner we can make a reality of economic reforms in terms that are seen by the public as contributing to their economic wellbeing, the better," he said.